
OpenAI has announced its plans to develop a custom inference chip called Jalapeño in collaboration with Broadcom. This move is part of a broader trend among tech giants to reduce dependency on Nvidia's GPUs by creating hardware tailored to specific needs. The Jalapeño chip is expected to provide OpenAI with more control and potentially significant performance improvements. This development places OpenAI alongside companies like Google and Apple, who are also pursuing custom silicon solutions.
Read originalEarlier coverage that leads up to this article, and what followed. Lines connect each piece to the closest one after it, converging here.
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OpenAI and Broadcom unveil LLM-optimized chip
8 developments
© TechCrunch AIxAI's attempt to dismiss the NAACP's Clean Air Act lawsuit failed after a federal judge ruled that its gas turbines are not exempt mobile sources and that plaintiffs have standing. This legal setback confirms that AI infrastructure operators cannot bypass environmental permitting by classifying heavy industrial equipment as temporary or mobile. The ruling forces xAI to face scrutiny over air quality impacts at its Colossus data center, setting a precedent for how large-scale compute facilities are regulated under existing environmental laws.
© TechCrunch AIOpenAI is scaling back its ambitions as investor appetite for massive AI infrastructure bets cools. The company has lowered its fundraising target from $30 billion to $20 billion, with only $11 billion secured so far against a valuation that has dropped from $1.4 trillion. This retreat signals a growing wariness among Wall Street investors regarding the capital intensity of the AI race, forcing even the most dominant players to adjust their financial expectations.
© TechCrunch AINvidia is considering a residual value guarantee for Nscale’s $44.6 billion Anthropic data center in West Virginia, effectively co-signing the construction debt to keep the project alive. This move signals deepening financial entanglement between chipmakers and neocloud providers as investors grow jittery about massive capital expenditures. With Nscale struggling to deploy chips and facing local opposition, Nvidia’s backing aims to secure a major customer for its next-gen Vera Rubin hardware while mitigating risk for lenders. It marks a significant escalation in Nvidia’s financial involvement with neocloud providers beyond standard chip purchases. The arrangement would see Nvidia step in if Nscale defaults on construction payments, helping secure financing for the facility that will house Anthropic’s infrastructure using Nvidia’s Vera Rubin chips. Nscale, which is seeking a $35 billion IPO, has faced delays and local opposition, while Anthropic recently filed for its own public offering amid concerns over future credit ratings. This potential guarantee underscores the industry's reliance on chipmaker balance sheets to sustain multi-billion dollar infrastructure buildouts.
This release quietly cements llama.cpp as the universal inference runtime by finally supporting NVIDIA's latest CUDA 13 stack alongside AMD's ROCm 10.0. The inclusion of native builds for Linux arm64 with Snapdragon chips, covering CPU, Adreno GPU, and Hexagon NPU, signals a serious push into mobile edge deployment. While Apple Silicon KleidiAI is disabled in this specific build, the broader hardware coverage means developers no longer need to compile from source for most modern accelerators. It’s less about new features and more about removing friction for anyone running local models on bleeding-edge or diverse hardware.
© The Verge AIApple is finally unlocking its AI suite for Chinese users with the iOS 27.3 beta, marking a significant regulatory milestone after months of approval delays. The rollout relies on Alibaba’s Qwen model rather than OpenAI, integrating features like notification summaries and visual intelligence directly into the OS. By sidestepping the new Siri in favor of established text and image tools, Apple is prioritizing immediate utility over the full generative experience. This move effectively brings Apple’s AI capabilities to a massive new market, albeit with localized constraints that distinguish it from the global release.
© Matt WolfeGoogle launched Gemini 4 Carbon, a new model variant aimed at providing high performance at a lower cost for inference tasks.